Agellan Inks Leases at Houston Office Campus
The pair of commitments total 66,000 square feet.
Agellan Commercial REIT has signed two leases amounting to 66,000 square feet at Beltway 8 Corporate Centre in Houston. NAI Global Corporate Services and Transwestern represented US Med-Equip, while the other tenant, Keystone Advisors, was represented by Moody Rambin. A JLL team worked on behalf of the landlord in both deals.
The owner purchased the three-building office complex in 2013, CommercialEdge data shows. Completed between 2003 and 2006, the properties encompass a total of 362,452 square feet.
US Med-Equip, a medical and hospital equipment provider, signed a 34,000-square-foot commitment at Beltway 8 Corporate Centre IV. The two-story, 131,908-square-foot building was completed in 2006 and comprises 66,000-square-foot floorplates. The LEED Silver-certified building includes two passenger elevators and some 720 parking spaces. Plans call for an upgrade of the property that is set to include lobby improvements, a new conference center and a grab-and-go food option. The renovation is expected to finish in the second quarter of 2024.
Keystone Advisors, an insurance brokerage firm, will occupy 32,000 square feet at the 129,505-square-foot Beltway 8 Corporate Centre III. Dating back to 2005, the two-story office property comprises 64,752-square-foot floorplates, approximately 780 parking spaces and two passenger elevators. The building is also LEED Silver certified.
Located at 10900 Corporate Centre Drive and 4920 Westway Park Blvd., the buildings are 8 miles from Memorial City Mall and Village Plaza at Bunker Hill, which offer several dining and retail options. West Houston Airport is 9.5 miles away, while downtown Houston is 20 miles southeast.
The JLL leasing team consisted of Senior Vice President Scott Fikes, Vice President Matt Pruitt and Senior Associate Christian Canion. The team that represented US Med-Equip included NAI Global Director Cory Sleeth and Transwestern Executive Managing Director John Ferruzzo. Moody Rambin Executive Vice President Josh Marcell and Associate Anthony Porraz represented Keystone Advisors.
Houston’s office market sees high vacancy rate
According to a CommercialEdge report, Houston had a vacancy rate of 25 percent as of October, 720 basis points above the national average. However, office transactions in the market amounted to $1.17 billion, ranking seventh on national level and surpassed by metros such as Los Angeles, Dallas and Washington, DC.
In terms of pipeline, Houston had some 2.7 million square feet of office space under construction in October, the same source shows, amounting to 1.1 percent of total stock. Current projects in the area include Framework @ Block 10, a 200,000-square-foot office building developed by Hicks Ventures. That project is expected to be delivered by the end of 2024.